He submitted his resignation to President Bidhya Devi Bhandari at the President's Office here, officials here said. Oil was expected to announce his resignation shortly in the Nepal Parliament, where he was to reply to the motion of no-confidence against his government.

Nepal's Parliament on Friday began discussing the no-trust motion after three bills related to the annual budget were rejected by a majority vote.

The rejection of the budget-related bills came as a major blow to the Oli government, which was reduced to a minority after key alliance partner, Communist Party of Nepal (Maoist-Centre) withdrew support earlier this month.